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FRASER INSIGHT
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Issue 65 | Autumn 2022
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Welcome back to Fraser Insight, the Fraser Institute’s U.S. newsletter.

This autumn issue of Insight is highlighted by our In Focus section. As always, the In Focus section showcases in-depth research and analysis. This issue features the latest Economic Freedom of the World index (where the U.S. is ranked 7th), a critical analysis of the Intergovernmental Panel on Climate Change, and a reassessment of so-called “environmental, social and governance” investing.

Our In Print section, which highlights timely commentaries and op-eds, includes pieces on a possible pivot toward economic freedom in Western capitals, the economic illiteracy of many political leaders, and the costs of government climate-change mandates.

Finally, our In Context section recaps the annual gathering of our Economic Freedom of North America (EFNA) Network [[link removed]], which was held in Dallas last month.

We encourage you to share Insight with friends and colleagues by inviting them to sign up for Insight here [[link removed]]. Visit our website [[link removed]], which serves as a storehouse for cogent commentary [[link removed]] and in-depth analysis [[link removed]]—all from a free-market perspective. Follow us on Twitter [[link removed]]. Join us on Facebook [[link removed]]. And check out the In Touch section for more contact info.


In Print: Commentary and Review
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Tide May Be Turning toward Greater Economic Freedom [[link removed]]
National Post
After 15 years of waning economic freedom, larger governments, green and net-zero initiatives, and now rampant inflation, could the tide be turning back toward economic freedom?

Here’s Why Climate Change Is Different than Other Environmental Problems [[link removed]]
Financial Post
We haven’t yet, and likely never will, respond to the climate issue the way we did to acid rain, urban smog and other previous environmental problems. The costs and benefits of feasible policy options differ. It’s not political, it’s the economics.

Businessmen Who Preach ‘Corporate Social Responsibility’ Pave the Road to Socialism [[link removed]]
Ottawa Sun
There’s no denying that businesses in recent years have increasingly pursued social goals at the expense of shareholders. This might sound noble to some, but the end result of politicizing commercial activity in this way is to reduce economic freedom and productivity, to the detriment of all.

‘Learning Styles’ Myth Damaging Our Education System [[link removed]]
Globe and Mail
The concept of individual learning styles—applied to the general student population, beyond learners with special needs—appears to be a myth.

Political Leaders Don’t Understand Prices [[link removed]]
Fraser Blog
Part of the reason Canadians and Americans are suffering is that political leaders in both countries fundamentally misunderstand markets and prices.

Different Groups of People Earn Different Amounts of Money—and There’s Nothing Wrong with That [[link removed]]
National Post
Different groups of people behave differently, have different preferences, and make different decisions. They should, therefore, earn different amounts of money. There’s nothing wrong with that, and there’s no case for regulatory intervention.


In Focus: Research and Analysis
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Economic Freedom of the World: 2022 Annual Report [[link removed]]
The report measures economic freedom—the ability of individuals to make their own economic decisions—by analyzing the policies and institutions of 165 countries and territories. Indicators include regulation, freedom to trade internationally, size of government, property rights, government spending and taxation. Based on 2020 data (the most recent data available), Hong Kong ranks 1st, though this ranking is based on data from 2020, before Beijing began undermining Hong Kong’s rule of law. Hong Kong is followed by Singapore, Switzerland, New Zealand, Denmark, Australia, the United States, Estonia, Mauritius and Ireland. The pandemic clearly had an effect, with 146 countries and territories experiencing a decline in economic freedom, after governments worldwide imposed COVID restrictions.

The Hand of Government in the Intergovernmental Panel on Climate Change [[link removed]]
Since 1990, the Intergovernmental Panel on Climate Change (IPCC) has produced regular assessments of the state of climate science and also provided reports on particular aspects of climate science. The IPCC has long advertised itself as an unbiased and objective reporter on the state of climate science, and even otherwise independent-minded people often base arguments about the consequences of climate change on IPCC numbers. However, the IPCC is not, and has never been, an objective science assessment organization. It was created by, and has always been controlled by, the governments of countries that perceive political benefits from international regulatory action to reduce greenhouse gas emissions. The IPCC is a scientific advocacy organization. It presents science that supports costly regulations to reduce greenhouse gas emissions, while suppressing or ignoring scientific work that shows that the costs of such actions are likely far higher and the benefits far lower than advertised.

Economic Freedom in the Literature: What Is It Good (Bad) For? [[link removed]]
Hundreds of studies in academic journals show that economic freedom leads to positive outcomes for people, whether in increased prosperity, reduced conflict, or stronger human rights. Scholars such as Adam Smith, David Ricardo, Ludwig von Mises, F.A. Hayek, and Milton Friedman, among others, argue that an economic system based on private property, competitive markets, and free trade would yield good outcomes: not only prosperity but human flourishing in many dimensions. Other scholars, among them Karl Marx, J.M. Keynes, Abba Lerner, and Joseph Stiglitz, argue that economic freedom leads to bad, or at least sub-optimal, outcomes. Ultimately, whether economic freedom yields positive or negative outcomes is an empirical question. This essay (a chapter from the 2022 edition of the Economic Freedom of the World Annual Report) examines over 1,300 peer-reviewed journal articles that have cited the EFW index. Of these, over 700 articles looked at the impact of economic freedom on the human condition and most find a link between high or increasing levels of economic freedom with gains in prosperity and other measures of well-being; less than one in 20 find negative consequences.

ESG: Myths and Realities [[link removed]]
Environmental, social and governance investing—ESG investing for short—is the latest movement by activists to compel businesses and persuade investors to pursue larger social goals, including environmental initiatives, by mandating more extensive disclosure of environmental, social and governance practices of businesses. This essay series highlights the misunderstandings and simplifications of this call for increased financial disclosure regulations.


In Context: News and Events
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EFNA Network Partners Gather for Annual Conference
Dozens of scholars and think-tank execs representing 20 research institutes from across North America gathered in Dallas for our annual EFNA Network [[link removed]] Conference. Cohosted by the Fraser Institute and the SMU Bridwell Institute for Economic Freedom, the conference featured presentations from EFNA Network partners Dan Sutter ( Manuel H. Johnson [[link removed]] Center at Troy University in Alabama), Paul Gessing ( Rio Grande Foundation [[link removed]] in New Mexico), Mike Lafaive ( Mackinac Center [[link removed]] in Michigan), Vance Ginn ( Texas Public Policy Foundation [[link removed]]) and Keli’i Akina ( Grassroot Institute [[link removed]] in Hawaii).

Robert Lawson (director of the Bridwell Institute for Economic Freedom [[link removed]]) and José Torra (EFNA coauthor and head of research at Caminos de la Libertad [[link removed]]) joined Ginn in leading a fascinating keynote discussion focused on “Economic Freedom in an Era of Inflation, Conflict and Economic Nationalism.” Roberto Salinas-León (president of the Mexico Business Forum) delivered remarks on the state of free trade in North America, and Perth Tolle (founder of the Life and Liberty Indexes) discussed the importance of “investing in freedom.” Fred McMahon [[link removed]] (the Fraser Institute’s Dr. Michael Walker Chair in Economic Freedom) and Dean Stansel (research associate professor at the Bridwell Institute for Economic Freedom) joined Torra in offering a preview of the forthcoming EFNA report, which is set to be released in November.

Now in its ninth year, the EFNA Network enfolds 58 members in 47 states/territories, Canada and Mexico. EFNA Network partners co-publish the report, host EFNA-related events, use the report in their research and publications, and disseminate the report to citizens, policymakers and media outlets in their states, territories and regions. In the 11 months since publication of EFNA 2021, the Network has generated 109 media placements in 25 states and multiple national outlets, including Real Clear Policy, American Business Review, The Hill and Forbes. For more information on the Network, click here [[link removed]]. If your organization is interested in joining the Network, contact Alan Dowd (managing director of the EFNA Network) at [email protected] [[link removed]].

In Touch: Connect with Us To learn more about our research team, visit our senior staff [[link removed]] and senior fellow [[link removed]] pages. We always welcome your feedback at [[email protected]]. To find out more about supporting the Fraser Institute, call (800) 665-3558, ext.568, or donate online [[link removed]].


STAY UP TO DATE
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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of 86 think-tanks. Its mission is to measure, study, and communicate the impact of competitive markets and government intervention on the welfare of individuals. To protect the Institute's independence, it does not accept grants from governments or contracts for research. To find out more, call (800) 665-3558 ext. 590.

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